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Crypto Brainiacs Gather Amid Sector Optimism
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By Marc Vartabedian, WSJ Pro
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Good day. Yesterday, the Science of Blockchain Conference at the University of California, Berkeley, featured a zany display of equations and esoteric presentations on crypto systems. Optimism for a crypto sector that is regaining its footing after several turbulent years was palpable.
The conference is known for being highly technical. In contrast to general technology conferences that whip up excitement with music and high-flying presentations, computer science researchers clicked through math-heavy slides. They presented equations for sci-fi sounding concepts like “Ethereum blobs” and “multiplicity codes,” to name a few.
Venture capitalists in attendance said that deciphering all of this could be tough, even for the seasoned crypto investor. Yet, wading into crypto’s technical weeds could give them a leg-up in sourcing deals as competition heats up.
Venture funding for crypto startups soared 195% to roughly $17.5 billion this year through June, relative to the same period last year, according to analytics provider CryptoRank. Venture investors, founders and academics say recent tailwinds like initial public offering activity and the price of bitcoin are breathing new life into crypto after several years of tough times.
“It’s helpful to see where the research is going,” Vanessa Grellet, a managing partner at Austin-based crypto firm Arche Capital Management, said after watching a theory-heavy presentation about crypto software development by a Stanford University computer science Ph.D. student.
Harrison Dahme, a research partner with crypto-focused Hack VC, said keeping up with the academic side of crypto innovation is important for his role in performing technical due diligence for the firm.
For crypto technologist Marek Olszewski, the presence of venture capitalists at technical crypto conferences is a good sign for the sector.
“It’s one way investors differentiate themselves,” said Olszewski, who has raised capital for several crypto projects from investors including Andreessen Horowitz, Polychain Capital and Greenfield Capital. “It’s important to find an investor up to speed and up to date on the latest technologies.”
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And now on to the news...
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President Trump PHOTO: BONNIE CASH/BLOOMBERG NEWS
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White House Preps Order to Punish Banks. The White House is preparing to step up pressure against big banks over perceived discrimination against conservatives and crypto companies with an executive order that threatens to fine lenders that drop customers for political reasons.
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A draft of the executive order, which was viewed by The Wall Street Journal, directs bank regulators to investigate whether any financial institutions might have violated the Equal Credit Opportunity Act, antitrust laws or consumer financial-protection laws.
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Violators could be subject to monetary penalties, consent decrees or other disciplinary measures, according to the draft.
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11.8%
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The share of all U.S. venture deals that were down rounds in the first half of 2025, according to Silicon Valley Bank. That's similar to last year’s levels, and about double the rate of down rounds in 2021 and 2022, per SVB.
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AI Startups Are Cash-Burning Machines, SVB Data Says
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Venture-backed AI startups are burning money at faster rates than non-AI companies to gain revenue, according to a report by Silicon Valley Bank. The lower cost of capital for AI companies is likely causing the inefficiency, the authors wrote.
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The median AI startup at the Series A stage, for example, is spending $5 to get $1 of new revenue, according to the bank’s analysis. That’s $1.40 more than non-AI companies at the same stage.
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AI companies also produce less revenue per employee than non-AI ones, per SVB. An AI company at the Series A stage, for example, is generating $38,000 of median revenue per employee, compared with $42,000 per employee at a non-AI company, the report said.
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AI companies are also less profitable across stages, the report said. SVB counted large-language-model companies, as well as all startups building products and services on top of AI, in the AI category. —Yuliya Chernova
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AI Is Listening to Your Meetings. Watch What You Say.
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AI is listening in on your work meetings—including the parts you don’t want anyone to hear. Before attendees file in, or when one colleague asks another to hang back to discuss a separate matter, AI notetakers may pick up on the small talk and private discussions meant for a select audience, then blast direct quotes to everyone in the meeting.
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Funds
Forward Deployed Venture Capital raised $45 million for its second fund to continue investing in sectors including defense, energy and manufacturing.
People
Eclipse, which invests in physical industry startups, hired Joe Fath as partner and head of growth. He joins the firm after more than 20 years at T. Rowe Price.
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Clay, a New York-based AI go-to-market development platform, scored $100 million in Series C funding at a $3.1 billion post-money valuation. CapitalG led the round, which included participation from Sequoia Capital, Meritech Capital, First Round Capital and others.
Rillet, an enterprise resource planning platform for finance teams, landed $70 million in Series B funding. Andreessen Horowitz and Iconiq co-led the investment, which included additional contributions from Sequoia Capital and Oak HC/FT. Alex Rampell and Seth Pierrepont, general partners at Andreessen Horowitz and Iconiq, respectively, will join the company’s board. Rillet has offices in New York, San Francisco and Barcelona.
Lyric, a Sunnyvale, Calif.-based supply-chain decision making platform, secured $43.5 million in Series B financing. Insight Partners led the round, which included participation from Primary Venture Partners, Permanent Capital Ventures and others.
NG.Cash, a São Paulo-based consumer fintech platform, closed a $26.5 million Series B round. Led by New Enterprise Associates, the investment included additional support from Monashees, Andreessen Horowitz and Endeavor Catalyst.
Kontext, a San Francisco-based advertising platform for AI chatbots and generative AI apps, emerged from stealth with $10 million in seed funding led by M13.
OLarry, an AI-powered tax advisory startup for high-net-worth individuals and businesses, picked up $10 million in Series A funding led by TTV Capital.
Vendict, a Tel Aviv-based enterprise governance, risk and compliance provider, raised $10 million in Series A funding led by Moneta Venture Capital and JAL Ventures.
August, a New York-based legal AI startup focusing on midsize law firms, fetched a $7 million investment led by New Enterprise Associates and Pear.
Wattch, a startup providing unified monitoring, intelligence and control for renewable energy systems, was seeded with a $6 million investment led by Spero Ventures.
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During the quarter, Rivian produced 5,979 vehicles and delivered 10,661 vehicles. PHOTO: DAVID PAUL MORRIS/BLOOMBERG NEWS
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